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There has been much coverage about this company on the internet.


As of today, this company has been around for 10 years. And despite
all the complaints that it has received, it is still in business.
How could a company that is conducting a “scam business” still “in
business”?

First, we start off with the BBB report, which stated that there were a total of 13 complaints in the last 3 years. According to the report, the company did attempt to address or resolve all 13 complaint issues in the past 3 years, but only 3 out of the 13 customers acknowledged that they are satisfied.

Now assuming that all complaint cases were reported to BBB, 13 cases are not considered a large number. It is normal for a company or shop to received even larger number of complaints. Why does every company need to have a customer service in the first place? Answer: Resolve customer’s complaint. As such, we cannot conclude that the company is running a scam based on these statistics alone. Fortunately, BBB has indicated the following notes in the report:

“When considering complaint information, please take into account the
company’s size and Volume of Transactions, and understand that the
nature of complaints and a firm’s responses to them are often more
important than the number of complaints
.”

Since we do not have any details of the responses, the only question left is how many complaints over the total volume of transaction. Was is 13 out of 15? 13 out of 100? Or 13 out of 1,000?

It is hard to find a perfect business that has never received a customer complaint. Who is the richest man on earth? Bill Gates (after Warren Buffet lost the title during this economic crisis). And does Microsoft received any complaints? They would have received hundreds of thousands of complaints over the past 10 years since Windows 95 days, e.g. windows crashing, unstability, virus-prone, memory hogging, etc. This may not be the best analogy, but we are thinking along the same line. We expect that a scam to be clear as crystal, without doubt. A lottery scam is a scam, bottomline.

BBB gave Cyberwize a “C” rating, which is somewhere in the middle of the range. It does not have a “F” rating. Hence, for a start we can safely conclude that the company is not a scam, i.e. it is not conducting an illegal, rip-off business – something that you can call the police and close the company down.

However, this does not always imply that the company is trustworthy or reliable. E.g. the company did not disclose certain information during a sale, and if the customer did not ask, then the risk is on the buyer. This is different from misrepresentation, e.g. the sales man lied/misrepresent the product information, policy, etc.

We investigated further and found this site: Beware of Cyberwize which recorded the following historical records of the company.
—–
1. In the summer of 2004, CyberWize was fined $100,000 by the Economic

Crime Division of the Florida Office of the Attorney General.

http://www.bbbwestflorida.org/commonreport.html?bid=6180112

2. Former CyberWize executive Gregg Sturz has said that, “In addition

to the deceptive statements and practices of the Plaintiff its

promotion of an inherently fraudulent pyramid scheme “omits to state a

material fact” when it does not explain to its ┬ádistributors that the

program is bound to collapse.”

http://www.davideisenstein.com/AnswerandCounterclaim070204.pdf

3. According to the Better Business Bureau, CyberWize has an

“unsatisfactory” record in dealing with customer complaints.

http://www.bbbwestflorida.org/commonreport.html?bid=6180112

4. In October of 1996, CyberWize owner Mark McCool “agreed to pay

restitution and agreed to a revocation of his insurance license. This

action was based on allegations of utilizing premiums for his own

use.”

http://oci.wi.gov/admact/nr1096.htm

5. “The mean average income of the bottom 99% of the active Cyberwize

sales representatives was $5.61 per week (before expenses and taxes

are deducted resulting in a significant loss).”

http://www.falseprofits.com/MythofMLMIncome.doc.pdf

6. CyberWize was fined $3,000 in 2004 through “Project Biz Opp Flop, a

coordinated attack on misleading and bogus money-making schemes.”

http://www.doacs.state.fl.us/press/2005/02222005.html

—–

Cyberwize has a bad historical record of “bogus money-making scheme” and its still not shut down by the authorities.

In our opinion, a company that sells genuine products in MLM company. Although it is a Pyramid system, we would call it a “legal” pyramid system. These company are normally approved by the authorities, e.g. Amway is a good MLM company.

A company that sells nothing, fake, or value-less item (e.g. a piece of certificate), is an illegal Pyramid or Ponzi system. Please check our articles. Many sites try to differentiate the 2, and some even mentioned that they are the same.

The structure of MLM is also a “triangle” shape. However, it is a legal Pyramid system that focuses on good products, and the marketing, sharing and selling of these products to others. You can be a business owner where you find buyers who will only be end-users of the product if they find the product is good. Or it can be a partnership concept, where your customer joins the business and sell to others. In order for a business to succeed as a good MLM, its product must have great value,

Although Cyberwize has some bad records in the past, there is not enough evidence to show that they are running illegal pyramid system now.

Note: HotScams.com is not related to Cyberwize.com

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